Powell Company had the following errors over the last two years: 2016: Ending inventory was overstated by $58,500 while depreciation expense was overstated by $24,800. 2017: Ending inventory was understated by $10,500 while depreciation expense was understated by $7,800. By how much should retained earnings be adjusted on January 1, 2018? (Ignore taxes) Multiple Choice Increase by $48,000 Decrease by $33,800 Increase by $27,500